Ashlan Park SHOPPING CENTER - LoopNet
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Ashlan Park
SHOPPING CENTER
FRESNO, CA
OFFERING PRICE: $17,000,000 | CAP RATE: 7.2% | YEAR 1 LEVERAGED CASH-ON-CASH: 11.8%
IRREPLACEABLE GROCERY-ANCHORED NEIGHBORHOOD CENTER
Holliday Fenoglio Fowler, L.P. acting by and through Holliday GP Corp. a California licensed real estate broker, California License Number 01385740 (“HFF”)
THE OPPORTUNITY
HFF, as Exclusive Advisor, is pleased to present the opportunity to acquire Ashlan Park Shopping Center (“Ashlan Park” or the “Property”), a
153,870 square foot grocery-anchored neighborhood center located in Fresno, California. Anchored by Save Mart Supermarkets, the Property is
91% leased, holding an irreplaceable position within the dense residential neighborhood of Ashlan Park and has recently undergone approximately
$6MM worth of capital improvements.
The Property boasts an exceptional tenant roster comprised of a diverse mix of everyday needs and services, e-commerce resistant, and
experience-focused tenants including Save Mart, dd’s Discounts, Starbucks, Dollar Tree, Arby’s, Chevron, and Fit Republic Health Clubs. Tenants
average an astounding 15.7 years of occupancy, demonstrating long-term commitment and creating an exceptionally stable cash flow. With
recent brand new leases and renewals, investors are protected from near-term rollover with a weighted average remaining lease term of 7.4 years.
With over 150,000 residents within a 3-mile radius, Ashlan Park is well-positioned in a high barriers-to-entry market and offers investors an
opportunity to acquire an infill, generational asset at a fraction of replacement cost.
2.79% RATIO HEALTH
Ashlan Park // 2
PROPERTY SUMMARY TENANT SUMMARY
OFFERING PRICE $17,000,000 TENANT SIZE (SF) % OF GLA EXPIRATION TERM REMAINING YEARS OF TENANCY
WELLS FARGO Kiosk - 3/31/2022 4.1 10.9
GOING-IN CAP RATE 7.2%
ASHLAN PARK BARBER SHOP 572 0.4% 2/28/2023 5.0 10.8
YEAR-1 NOI $1,221,394 BJ'S KOUNTRY KITCHEN 2,017 1.3% 6/30/2023 5.3 10.7
PRICE PSF $110 SAVE MART 47,556 30.9% 9/22/2023 5.6 33.7
YEAR 1 LEVERAGED CASH-ON-CASH 11.8% AEROZONE TRAMPOLINE PARK 29,548 19.2% 9/30/2023 5.6 4.9
STARBUCK'S 1,521 1.0% 2/29/2024 6.0 14.4
ADDRESS 4151 E Ashlan Ave. Fresno, CA 93726 DOLLAR TREE 12,096 10.3% 3/31/2025 7.1 19.9
OCCUPANCY 91% PIZZA PIT 2,843 1.8% 7/21/2025 7.4 2.6
GLA (SF) 153,870 dd’s DISCOUNTS 18,665 12.1% 7/31/2028 10.4 0.0
FIT REPUBLIC 19,960 13.0% 12/26/2028 10.8 4.2
SITE SIZE (ACRES) 15.04
ARBY'S 1,995 1.3% 4/30/2028 10.2 29.7
YEAR BUILT 1962 FAST ‘N’ ESY (Chevron) 2,800 1.8% 4/30/2035 17.2 3.0
Weighted Average Weighted Average
RENOVATIONS 2015-2018 Lease Term 7.4 Years of Tenancy 15.7
OPENS
JUNE
2018
Ashlan Park // 3
INVESTMENT HIGHLIGHTS
GROCERY-ANCHORED AND E-COMMERCE
RESISTANT TENANCY
Ashlan Park is anchored by Save Mart Supermarkets, dd’s Discounts,
Dollar Tree, Fit Republic Health Clubs, and Aerozone. These major
tenants comprise over 83% of the total GLA, 78% of total rental
income, and are everyday needs retailers, experience-focused,
and e-commerce resistant.
1.1 MILES
24,000 STUDENTS
LONG-TERM, STABLE CASH FLOW
With a weighted average tenant occupancy of approximately 16
years and a weighted average remaining lease term in excess
of 7 years Ashlan Park is an exceptional investment, providing
investors with long-term, stable cash flow.
N
Ce
STRONG LEASING MOMENTUM AND LIMITED da
rA
ve
TENANT ROLLOVER
Ashlan Park has a brand new lease with dd’s Discounts (Ross, Inc.
credit), as well as lease renewals with both Arby’s and Ashlan Park
Barber Shop. Based on strong tenant operating histories, investors
can anticipate continued lease-up and renewal momentum Ashlan Park
enchaining an already strong and stable cash flow.
SHOPPING CENTER
FRESNO, CA
HIGH VISIBILITY, DENSE INFILL LOCATION
WITH STRONG DEMOGRAPHICS
The Property occupies an irreplaceable hard corner position
providing incredible visibility along two major Fresno
thoroughfares. The dense, infill market with a population
exceeding 150,000 within 3-miles further enhances the Property’s
position while creating natural barriers to competition.
Ashlan Park // 4
OFFERED WITH HIGH CASH RETURNS AND
BELOW REPLACEMENT COST
Ashlan Park offers a unique opportunity to acquire a high
quality property free and clear of debt, with an immediate
11.8% leveraged cash-on-cash return, and significantly below
estimated replacement cost.
DIVERSE EXIT STRATEGY
Ashlan Park offers diverse exit strategies and the unique ability
to lower basis through selling single tenant NNN pads into a
highly competitive market. Additionally, investors can create
significant value through continued lease-up and development
of the underutilized back parcel.
NATIONAL TENANTS ACCOUNT FOR 35%
OF INCOME
% Ashlan Park’s strong line-up of national tenants account for
over 35% of the Property’s income, enhancing the long-term
stability of the Property’s cash flow.
nA
ve 2
3,67
4V
PD
3.3 MILES APPROXIMATELY $6MM OF RECENT
Ash
la CAPITAL IMPROVEMENTS
Ashlan Park has recently undergone approximately $6MM of
capital improvements including construction of the dd’s Discounts
building and Chevron gas station, facade work, roof replacement,
N and updated monument signs. This has enhanced curb appeal
Ce and tenancy while eliminating the need for additional near-term
da
rA capital expenditure.
ve
Ashlan Park // 5SITE PLAN & VALUE CREATION OPPORTUNITY
DOLLAR TREE
S&P: BB+ SAVE MART A long-term DD’S DISCOUNTS
A thriving national tenant tenant with a 2.79% Health Ratio S&P: A- (ROSS INC.) FUTURE PAD
and continues to grow their provides Ashlan Park with a dd’s opens June 2018 DEVELOPMENT &
national presence strong in-place grocery anchor GROUND LEASE
EXPERIENTIAL
RETAILERS
PIZZA PIT
± 2,667 SF
BARBER
SHOP
KITCHEN
BJ'S KOUNTRY
±1,800 SF
TRAMPOLINE PARK
NAP
BRAND NEW
CONSTRUCTION
STARBUCKS ARBY'S In 2017, Arby's funded full exterior and
S&P: A- interior renovation, solidifying their position at Ashlan
POTENTIAL FUTURE PAD SALES Park and recently signed a new ten-year lease
Option for futuresale of single-tenant extension. Arby’s is owned by renowned private
VACANT NNN pads equity firm, Roark Capital Group.
Ashlan Park // 6AREA AND MARKET HIGHLIGHTS
Ashlan Park is located in the East Shaw Submarket which is
comprised of 3.8 million square feet and benefits from the
5-MILE RADIUS
continued growth of Fresno County.
417,677 POPULATION
VACANCY: The East Shaw retail submarket vacancy rate sits at
5.2% making it one of the tightest retail submarkets in Fresno
SUPPLY: Due to the dense, infill nature of Fresno and lack of
$63,000+
AVERAGE HOUSEHOLD INCOME
commercially zoned, developable land there are currently no
retail centers under construction 3%+ 10-YEAR
POSITIVE NET ABSORPTION: With a lack of new supply and
POPULATION GROWTH
continued strong leasing momentum, there has been a 5-year
positive net absorption of 194,367 square feet
TOP 10 1
2
LOS ANGELES
SAN DIEGO
4,030,668
1,438,060 AVERAGE SUBMARKET RETAIL RENTS HAVE
INCREASED 32% SINCE Q1 2013
CALIFORNIA
3 SAN JOSE 1,030,796
4 SAN FRANCISCO 888,653
5 FRESNO 529,153
THE SUBMARKET VACANCY
CITIES BY 6
7
SACRAMENTO
LONG BEACH
507,298
467,512
RATE HAS DECREASED 19%
POPULATION
8 OAKLAND 424,275
9 BAKERSFIELD 384,188 SINCE Q1 2013
10 ANAHEIM 354,553 Source: CoStar Q1 2018
Ashlan Park // 7Ashlan Park
SHOPPING CENTER
FRESNO, CA
INVESTMENT ADVISORS Eric Kathrein Bryan Ley David Dokko DEBT ADVISOR Peter Smyslowski
Senior Director Managing Director Director Senior Managing Director
415.510.6961 310.407.2120 415.276.6926 415.276.6950
ekathrein@hfflp.com bley@hfflp.com ddokko@hfflp.com psmyslowski@hfflp.com
CA Lic. #01896107 CA RE Lic. #01458927 CA RE Lic. #01960806 CA Lic. #01301231
ATLA NTA DA LLA S LO S A NGELES ORANG E COUNTY PORTL AND WAS H INGTON,
AUSTIN DENV ER LO NDO N ORL ANDO SAN DIEG O D.C .
B O STO N HO USTO N MIA MI PH IL ADE L PH IA SAN FRANC IS CO
CA RO LINA S INDIA NA P O LIS NEW YO RK PH OE NIX S E ATTL E
101 Second Street, Suite 800 San Francisco, CA 94105
CHICAGO LA S V EGA S NEW JERSEY PITTS BURG H TAM PA
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